Antofagasta to buy 50-percent interest in Zaldívar copper mine

Barrick Gold Corporation today announced that it has reached an agreement to sell a 50-percent interest in the Zaldívar copper mine in Chile to Antofagasta Plc for a little more than $1 billion in cash, creating a partnership with a leading copper company.

"The sale of 50 percent of Zaldívar is consistent with our strategy to create long-term value for our shareholders,” Kelvin Dushnisky, co-president of Barrick Gold, said. “By selling a stake in this non-core asset, we strengthen our balance sheet while maintaining significant exposure to a strong cash-generating operation. Following a highly competitive auction process, we are pleased to reach an agreement with the ideal partner for Zaldívar. Antofagasta has an outstanding track record of building and operating mines in Chile, and we see this as the first step in an ongoing, collaborative partnership. There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future."

The transaction is expected to be completed in late 2015, subject to customary closing conditions.

"We are enthusiastic about partnering with Barrick at Zaldívar,” Antofagasta CEO Diego Hernandez said. “Together, we believe that we are well positioned to enhance the long-term value of the Zaldívar operation through our collective best practices. We have consistently been impressed with the workforce at Zaldívar, and look forward to partnering with them. We also look forward to exploring other opportunities to collaborate with Barrick in the future."